No News Is Good News

I believe the bulls have cleared some important hurdles today. One month ago there was record call buying. Today, a lot of the options that leveraged speculators purchased are expiring worthless. The deterioration of those options have likely contributed to the recent slide and that pressure should now abate. In the past few weeks investors have been de-risking and buying protection. That should put a floor under the market for the next expiration cycle.

Additionally, today's higher close might mean that the vicious cycle of liquidations has ended. While the day after options expiration is often weak I believe next week should be good barring any major developments. Have a great weekend.

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I do not offer investment advice on this site. Under no circumstances does this information represent a recommendation to buy, sell or hold any security. The information is for educational purposes only. I may hold a position in the securities discussed. Positions may change at any time without notice.